monetising mobile 2: snaptu

Getting ahead in Emerging Markets

Simon DaviesMD Europe

2Contact: simon@snaptu.com Confidential © Snaptu 2007-2010

Snaptu is a collection of social networking and lifestyle application’s running ‘in the Cloud’• Over 14m users, growing at 2m per month• Funded by (Google, YouTube, Yahoo…)

• Over 200 countries – majority in emerging markets• India, Indonesia, Malaysia, USA, UK, South Africa, Turkey, France, Mexico, Malaysia, Thailand,

Saudi Arabia, Vietnam, Russia, Germany, Spain, Australia, Philippines, Brazil, Venezuela, Argentina, China, Netherlands…

Snaptu - overview

3Contact: simon@snaptu.com Confidential © Snaptu 2007-2010

• Older 2G handsets & pre-pay dominate

• Handsets sold separate from SIMkits, vibrant 2nd hand device market

• Mobile is the primary Internet and e/m-commerce access point

• Albeit a minority are on data plans

• Operator new entrants and data plan competition

• Many OEM new entrants

• Accessible distribution

Emerging Market environment

4Contact: simon@snaptu.com Confidential © Snaptu 2007-2010

• SMS & Voice based• Basic SMS info services (sports, news, travel, astrology…)• Ringtones , wallpaper, cricket commentary while waiting (Hungama)• Voice blogs• Mobile wallets

• Data network based• Ringtones, wallpaper, music, games, apps – classic content portals• In app advertising• Virtual goods and currency• Mobile wallets

Revenue models in Emerging Markets

5Contact: simon@snaptu.com Confidential © Snaptu 2007-2010

• Voice BubbleBlog from • “Audio Twitter”• Bollywood star Amitabh Bachan 270k followers on Twitter, 350k on Bubbly (July) • 10-30 rupees ($0.21-$0.65) pcm per Blog subscribed to

• Mobile Money/Wallets• How it works – utility bills, where you charge up with cash• SMS vs data• Nokia Money/OBOpay in Pune (mainly SMS based)• Large number of players

• Comviva, C-SAM, Fundamo, G-Cash, GFG, Jigrahak, mCheck, MiPay, MobiComp, Monitise, Movensis, mPay, Mpesa, mTranZact, OBOPay, PayBox, PayM8, S1(Postilion), Simplue, SMART, Utiba, Valista, WIZZIT, Celpay, Zain Zap, Macalla

• Opportunity to integrate as the winners emerge

Revenue models in Emerging Markets

6Contact: simon@snaptu.com Confidential © Snaptu 2007-2010

• Virtual credits, goods and communities• “mobile-first community”• “40m+ members”• “200 +countries”• “chat, share photos, join groups, send gifts, play

games, create avatars, call friends, email…”

Revenue models in Emerging Markets

7Contact: simon@snaptu.com Confidential © Snaptu 2007-2010

• Emerging markets much more accessible• Operator appstores• Aggregators

• Cellmania (Airtel, Singtel, Maxis), Infosys (Aircel), Avarto (Vodafone Essar)

• New entrant OEM pre-installs• 3rd party appstores

• Getjar, Mobango…

• OEM appstores • Ovi, PlayNow…

Accessing users: distribution

8Contact: simon@snaptu.com Confidential © Snaptu 2007-2010

• Two tier market• Vast majority on old 2G handsets: see below

• Rapid drop off… no.1 and 2 are 2x # 4 and 10x #17

User device limitations

9Contact: simon@snaptu.com Confidential © Snaptu 2007-2010

Cheaper devices delivering ever higher end user experience• Micromax• Karbonn• Fly Mobile• Spice• Zen• Bharti Beetel• Lava• Bright• …

Note most are planning affordable Android devices

New generation of low end handsets emerging

10Contact: simon@snaptu.com Confidential © Snaptu 2007-2010

• Maybe approaching an inflection point • Operator competition & new entrants• New entrant OEMs • 3G rollouts

• Increasing opportunity to profit from data-centric offerings…

• … in markets where mobile handsets are the primary Internet device

Conclusions

simon@snaptu.com